What Is CLIP?
Crop-Livestock Income Protection (CLIP) is a new crop insurance option beginning with the 2026 crop year that provides umbrella-style revenue protection across multiple spring crops — and in some cases, weaned calves.
Instead of evaluating each crop policy on its own, CLIP looks at an operation’s combined revenue. If total revenue from covered commodities falls below a selected CLIP coverage level, an indemnity may be triggered.
This structure can be especially valuable for diversified operations that spread risk across multiple crops.
How CLIP Works
CLIP works alongside traditional Revenue Protection (RP) policies and is designed as an upper-layer coverage option.
Here’s the basic structure:
- You insure two or more spring crops with RP in the same county
- CLIP sits above those individual RP policies as an umbrella
- Coverage levels range from 60% to 85%
- CLIP provides protection only within the top 25% revenue band
- The CLIP coverage level must be at least as high as your highest RP level
If total revenue across all covered commodities falls below the CLIP guarantee due to a covered cause of loss — such as yield loss, price decline, or both — CLIP may provide an additional payment.
Why Some Producers Are Paying Attention
CLIP was designed to better reflect how diversified farms actually operate.
Potential advantages include:
- Higher overall revenue protection across multiple crops
- Risk diversification, rather than relying on a single commodity
- Premium efficiency due to spreading risk across crops
- A simplified coverage structure compared to stacking endorsements
For producers growing multiple spring crops, CLIP may offer a more holistic way to manage revenue risk.
Eligible Crops & Availability
CLIP is available for select spring-planted crops insured with Revenue Protection, including (but not limited to):
- Corn
- Soybeans
- Cotton
- Peanuts
- Rice
- Grain sorghum
- Dry beans and peas
- Spring small grains
- Weaned calves (under specific program rules)
Availability varies by county and state, and CLIP is not available everywhere.
Important Rules to Know
CLIP is not designed to replace every coverage option. Some key limitations include:
- CLIP cannot be used with CAT coverage
- It cannot be combined with SCO, STAX, or certain other endorsements
- All underlying RP policies must be written with the same agent and insurance provider
- CLIP applies only to spring sales closing dates
Because CLIP is new, understanding how it fits into an operation’s overall risk management strategy is important.
Learn More About CLIP
USDA Risk Management Agency has published an official CLIP Fact Sheet that provides a clear overview of how the program works, including examples and coverage details.
View the USDA CLIP Fact Sheet:
👉 https://www.rma.usda.gov/about-crop-insurance/fact-sheets/crop-livestock-income-protection
Talk With Your Agent
CLIP won’t be the right fit for every operation — but for producers with multiple spring crops, it’s worth discussing.If you’re planning for the 2026 crop year, now is a good time to talk with your crop insurance agent about whether CLIP is available in your county and how it might complement your current coverage.
